Financial abuse is used to cause long-term hardship and psychological distress to women and children who have left abusive relationships, with many facing legal and monetary battles for years after separation.

Although legally recognised as a form of family violence, financial abuse is not generally well understood or recognised, even by those who have experienced it, according to a new report from Women's Information Referral and Exchange (WIRE).

Financial abuse occurs when one partner uses money and other things that the couple may have owned – such as a home, car or business – to control their spouse's behaviour.

Previous research has shown that more than 80 per cent of women who seek help from family violence services had also experienced financial abuse.

But this report also found that the extent of abuse that continued through systems that were supposed to help women in crisis – such as the courts or welfare services – was "shocking", according to researcher Prue Cameron.

Abusive partners often used long-winded, vexatious court battles and custody disputes to continue their harassment of former partners and drain them of money.

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"Many women were exhausted or despairing. They were terrified if they didn't respond they would lose their kids," Ms Cameron said.

Without exception, the financial situation of the 200 women who participated in the study was worse after they left their relationship, and it affected their employment and housing prospects for years.

While it was often not accompanied by physical violence, it was always entwined with emotional abuse or threats, she said.

Sanda, who did not want to use her surname, experienced years of abuse – physical, emotional and financial – by her husband, who used to monitor every dollar she spent. He would supervise her at the supermarket and give her $50 a week to live off, which included her travel to work and lunch money.

She remained stuck in a casual job while his career soared, and after they divorced he would fudge the books to reduce his income so that he didn't have to pay child support.

On the night Sanda finally left him he locked her in the toilet and beat her for six hours - her little finger is now permanently bent and her jaw no longer closes fully.

Now a forensic accountant, Sanda has helped a number of women who had been financially abused to track assets that had been stolen or hidden by the ex-partners.

Ms Cameron said participants in the research were from a range of backgrounds, including social workers, police, occupational therapists, retail workers, academics and doctors: "It can happen to anyone and everyone."

Community Services Minister Mary Wooldridge told the audience at the report launch on Tuesday that financial abuse had been "on the radar" of government for about eight years, since concerns increased about the feminisation of poverty and inadequate superannuation for women.